Ethics

CFA Level II Ethics
#1

If Piesto Moranty, CFA, supervises group of analysts who are not enrolled in the CFA exam. Several times he tried to get his firm to adopt a compliance system but the firm did not take into consideration his recommendation. Piesto should;

  1. take no further action, because he has fulfilled his obligation under the code and standards by encouraging the firm
  2. report the inadequacy
  3. refuse supervisory resposibility

The answer is #3 but I do not get it. Since the firm was not involved in any misconduct why would he refuse the supervisory role?

#2

The firm won’t adopt a compliance system. He has made recommendations and they wont do it… They are out of control!!! They are probably running a ponzi scheme…Piesto should refuse supervisory responsibility and he should probably quit.

#3

Even more specifically he should decline to accept supervisory responsibility in writing

#4

the trick here is that he the firm did not adopt a compliance system (not CFA code of conduct)